Queensland’s Newman government plans to fast track mining exploration leases in order to speed up mining development in the sunshine state, a move hailed by the industry yet met with disdain by conservationists due to its potential environmental repercussions. Under a new system being proposed by the Queensland state government, mining companies will find out within three months if their proposed exploration plans are approved, before receiving environmental authority. Previously, a company would have to wait just under two years (22 months) to attain all of the relevant approvals in order to start exploring, however the new proposal the process will be significantly sped up- between six and twelve months- the latter being likely if native title considerations are involved.
The states Mining Minister Andrew Cripps says that although changes to the mining approvals process are primarily in response to the demands of miners, they have the potential to be helpful for farmers who negotiate leases for tracts of land. Queensland is traditionally a significant battlefront for conflict between mining companies and farmers, being the starting point for the now national ‘Lock the Gate’ campaign which is designed to encourage farmers to shut out the advances of hungry miners. According to Mr Cripps the new proposal "...means mining companies no longer need to wait until an exploration permit is granted before engaging with landholders about their proposed exploration activities...” This is a good thing for farmers, according to the Minister, because: “Those discussions can now happen much earlier, giving rural producers more time to consider and negotiate land access and conduct and compensation agreements put to them by resource companies." It remains to be seen whether farmers will be appeased by this apparent negotiating foothold, as in many cases their first concern lies with the retention of land itself and not what price they will reap from its sale. Mr Cripps has confirmed that even with the fast tracking process in place, mining companies will still be required to adhere to stringent environmental, commercial viability, community interest, native title and land access requirements.
Economic news NAB has released its business survey for the September quarter, indicating that while Businesses gained confidence due to political factors in the period, conditions fell to their weakest level in four years. The survey showed current business conditions slumped to –7 points in the quarter, from –6 in the June quarter. Meanwhile, business confidence hit a 2 year high, recovering to +3 points from -1 in the June quarter. The slumping conditions were most keenly felt in the mining sector, which fell to a 14.5 year low, while manufacturing, retail, wholesale, transport, utilities and construction were also poor.
Guidance and production reports
Newcrest Mining Limited
(ASX:NCM) has maintainted its full year production guidance despite increasing gold output by 27 per cent in the September quarter. The gold miner has also announced the securing of bilateral loan facilities for an extra $472.5 million from two banks, to provide additional liquidity headroom.
Woodside Petroleum Limited
(ASX:WPL) has posted a 27 per cent fall in third-quarter sales after a temporary interruption at its Pluto LNG project. Revenue declined to $1.34 billion, from $1.83 billion a year earlier, falling short of analyst estimates. Earlier today, FNN reported that Woodside has been warned by the West Australian government that it will not be given free rein over how it develops the Browse gas project.
Rio Tinto Limited
(ASX:RIO) has reaffirmed its 2013 iron ore production guidance after increasing global iron ore shipments in the third quarter. Rio says it posted 68 million tonnes of global iron ore shipments, a four per cent increase compared to the previous corresponding period. For the first nine months of the year, the miner's global iron ore shipments were 186.6 million tonnes, a four per cent increase compared to the same period a year ago. Full-year iron ore production guidance is unchanged at 165 million tonnes, subject to weather constraints. The miner says it’s achieved record iron ore production and shipments in Western Australia after officially opening its Pilbara 290 port and rail expansion four months ahead of schedule.
Mount Gibson Iron Limited
(ASX:MGX) says it is on track to meet its fiscal 2014 iron ore sales guidance after lifting ore sales in the September quarter. In the three months to September 30, the miner’s total ore sales were 2.6 million wet metric tonnes, up from 1.8 million wet metric tonnes in the previous corresponding period. The group reaffirmed full-year iron ore sales guidance of nine million to 9.5 million tonnes. Direct shipping ore product sales were 2.4 million wet metric tonnes in the quarter, up from 1.8 million wet metric tonnes in the previous corresponding period. Chief executive officer Jim Beyer says it was the group's second-best quarterly sales result.
Paladin Energy Limited
(ASX:PDN) says it's on track to reach its full year production targets as it continues to cut costs at its African mines. Production guidance for fiscal 2014 remains between 8.3 million and 8.7 million pounds of triuranium octoxide, which is a compound of uranium. The Perth-based miner produced just over 2 million pounds in the three months to the end of September, and sold 1.67 million pounds. Paladin anticipates sales of 2.6 million pounds in the December quarter. Sales revenue in the September quarter was $73.4 million.
OZ Minerals Limited
(ASX:OZL) has lowered its full-year copper production guidance despite reporting record volumes during the September quarter. In the three months to September 30, OZ Minerals mined more than 17,000 tonnes of copper and over 28,000 ounces of gold. The group revised down its 2013 production target between 70,000 and 75,000 tonnes of copper in the year. OZ Minerals in March forecast 2013 production of 82,000 to 88,000 tonnes of copper.
Other resources headlines
Fortescue Metals Group Limited
(ASX:FMG) Chairman Andrew Forrest has announced a $65 million cash gift to fund research at five universities. The move has been billed by national media as one of the biggest philanthropic donations in Australia’s history. Mr Forrest has spoken to media about the decision and the donation is reported to include a new $50 million Forrest Foundation, which will fund scholarships and postdoctoral fellowships at UWA and WA's four other universities. Mr Forrest told media he hopes the move will attract the brightest young minds to the state of Western Australia and establish Perth as a knowledge hub. Mr Forrest graduated from UWA in 1983 with a degree in economics.
Iluka Resources Limited
(ASX:ILU) total mineral sands production fell in the September quarter in response to lower demand. In the three months to September 30, Iluka produced 276,500 tonnes of total mineral sands, down from 397,500 tonnes in the same period last year. Total mineral sands production in the year to date was 848,500 tonnes, down from 1.2 million tonnes in the previous corresponding period. The figures include total zircon, rutile and synthetic rutile production of 142,300 tonnes in the quarter, down from 202,100 tonnes in the previous corresponding period.
